The Supreme Court Refuses to Hear a Student Loan Bankruptcy Case
The United States Supreme Court has refused to hear a case raising questions about whether student loans can be discharged in bankruptcy, leaving a tough student loan bankruptcy standard in place for the time being.
The case, Conti v. Arrowood Indemnity Co., involved a borrower who was trying to discharge her private student loans in bankruptcy. Conti, the borrower, had attended the University of Michigan and took out private student loans from Citibank totaling over $76,000. The loan applications identified the debt as educational debt for “students attending 4-year colleges and universities,” and the promissory notes mandated that “the proceeds of this loan are to be used for specific educational expenses.” The loans were disbursed directly to the university, and none of the disbursements exceeded the total cost of attendance.
